There are 40,000+ Real Estate Agents registered with the Toronto Real Estate Board. Although we have access to the same information, we all come equipped with different levels of education, experience and instinct which deliver varying results. My results are "Record Breaking" and let me show you why in today's "play by play"!
My basic strategy when listing a home is simple:
I put myself in the shoes of the target buyer and (1) determine what their perceived value of the property will be based on other comparable properties, (2) I determine what elements would make them fall in love with the property, and (3) I use staging to highlight the space and transform it to their dream home.
Let's look into these three steps in a little more detail...
1. Determining Value
If you've ever worked with a Realtor, then you should be familiar with a Comparative Market Analysis (CMA). A CMA is an analysis of the active, pending, sold and cancelled listings that are (1) in your neighbourhood and (2) a comparable offering to your property. It's the comprehensive analysis of the above data coupled with the realtor's current understanding of the market that will help determine a home's value.
In the current market, I personally don’t put too much weight into what others have listed for and sold for in the past. I look into sale to price ratio and days on market to estimate the level of demand there was in the past and I use my recent experience with both Buyers and Sellers to determine if there are any changes to the demand in the current market.
I then look into what other options are currently available on the market and try to interpret the perceived value as if I was a Buyer looking at all these different homes, and price it out according to other homes. Once I have established it's value, the next step is to attract the target buyer and highlight all the elements of the property that the prospective buyer will fall in love with.
2. Benefits and Added Value Propositions
There are many reasons why Buyers buy. Some Buyers buy a home, for the home itself, and others buy because of the convenience of the location. By doing my research, I'm able to understand what it is that brought the buyer to this home or this location. Is it the house and it's features, the finished basement, the extra large lot? Or is it the neighbourhood, the access to transit, great schools, walking distance to shops and restaurants? By researching all this, it will give me a better understanding of the house and the area to help me sell it more effectively, and help me determine added value based on other comparable properties in the community.
My goal is to always make my listing the first choice out of all the other listings around it. Often times, that means working with an experienced home stager to highlight all the checkboxes this buyer has on their "must-have" list. I use MiCreative Staging to get every one of my listings ready for sale. Staging helps the Buyer envision how they would use the space which creates an emotional attachment to the property. It's this emotional attachment that shifts a Buyer from a want to a need and eventually to a purchase!
Once these three steps are complete, I'm confident that my target buyer will love the home and have a good idea of what they perceive the value of the property is. I have all of the information and tools I need it to negotiate top dollar for the buyer to get their dream home, and to sell the features and benefits of my listing vs. any other comparable property in the neighbourhood.
Here are the Results:
(In order to demonstrate the difference in the results, I used stacked townhouse communities where "similar" properties were identical, but varied only by corner unit or non-corner unit, or park-facing or not park-facing)
Record Breaking Example No. 1 - Davenport Village, Lower Level Unit – Toronto
Based on the CMA, this property was selling for an average of 418K. I sold this property for a RECORD PRICE of 437.5K raising the average price of the lower units across the community.
Record Breaking Example No. 3 - Davenport Village, Upper Level Unit – Toronto
I listed an upper unit for 499K and sold it for another RECORD PRICE of 557K raising the previous highest price by 27K. You would think that this is the new established price for the neighbourhood, however a sale of an upper unit that occurred 2 days after I sold my listing, SOLD for ONLY 515K.
Record Breaking Example No 3. - High Park Village, Main Level Unit – Mississauga
Based on the CMA, this property was selling for an average of 376K. After one week of showings, a status certificate ordered, we sold FIRM for 400K setting a new RECORD PRICE. Since then, there have been 2 sales for identical properties, one for 380K and the other for 386K.
When working with a realtor to sell your home, it`s important to understand exactly what strategies your realtor is employing and all the reasons why. Couple that with someone that has the experience to highlight the features of your home and the instinct to capitalize on any sales scenario and you'll get a realtor who will Break Records and put more money in your pocket!